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US buyout group Cerberus Capital Management, which sealed a $7.4bn (â¬5.4bn) takeover of Chrysler earlier this week, is looking at a potential $65bn refinancing of the US carmaker's financial services arm to lighten its debt burden.

The plan, which forms part of Cerberus' broader acquisition financing strategy that is also based on the high-yield and loans markets, would be one of the largest corporate securitisations to date.

Philip Watkins, a credit analyst at Commerzbank in London, said Chrysler Financial Services could issue $30bn worth of asset-backed bonds, as well as $10bn in unsecured high-yield debt, with the remainder of the estimated $50bn to $65bn refinancing being structured through the loans market.

As part of the package, the banks have agreed to put into effect a $17bn undrawn loan or credit line to support the operating business of Chrysler, of which Cerberus has committed $5bn.

Cerberus will also commit close to $1bn to the financing unit and pay DaimlerChrysler additional $1.35bn.

While the size of a possible securitisation would be unprecendeted, the financing arms of rival carmakers including Ford Motor Credit and GMAC, the finance business of General Motors, have regularly sold asset-backed securities.

Cerberus bought a controlling stake in GMAC last year. The company returned to the Eurpean bond markets for the first time in nearly two years this week with a three tranche bond lead by ABN Amro, BNP Paribas and Société Générale.

As a result of Cerberus' debt-financed takeover, Chrysler’s credit rating of BBB is likely to fall towards BB, or sub-investment grade territory, according to DaimlerChrysler chief financial officer Bodo Uebber.

The lower rating would mean higher unsecured borrowing costs, which may push the company to access the securitisation markets where it could achieve lower costs of funding as asset-backed bonds typically hold higher investment grade ratings.

Securitisation may be "a large portion because of the cost effectiveness, but I'd still expect to see some unsecured debt because it's not a disastrous rating," Watkins said.